Senate Bill No. 401, introduced by Senator Talbot, establishes a Prescription Drug Affordability Board within the Louisiana Department of Insurance. This board will include key members such as the commissioner of insurance, the secretary of the Louisiana Department of Health, and the president of the Louisiana Board of Pharmacy, along with several public members appointed by state leaders. The board's primary function is to set maximum prices for prescription drugs sold in Louisiana, requiring drug manufacturers to provide detailed pricing information and compile a list of critical prescription drugs that are of public interest regarding their pricing. The bill also mandates that marketing materials directed at healthcare providers must include specific pricing information, such as average wholesale prices and historical pricing data.

Additionally, the bill introduces new requirements for public members of the committee, stipulating that they must have significant healthcare or pharmacy backgrounds and serve five-year terms. The committee is responsible for creating a list of critical prescription drugs, for which manufacturers must report detailed information, including production costs and marketing expenses. The law also requires manufacturers to disclose their drug pricing in Louisiana compared to other countries, with non-compliance classified as a prohibited practice under the Unfair Trade Practices and Consumer Protection Law. Furthermore, the law ensures confidentiality of reported data, prohibits its disclosure as a public record, and mandates the committee to produce an annual report on prescription drug prices and their impact on healthcare spending, with the law set to take effect on August 1, 2026.

Statutes affected:
SB401 Original: 44:1(B)(11)